Deep Dive into On-chain Data, What is the Initial Circulating Supply of WLFI?

Original Article Title: "Unveiling On-chain Data, What Is the True Initial Circulation Rate of WLFI?"

Original Article Author: Azuma, Odaily Planet Daily

Editor's Note: On September 1st, CoinMarketCap CEO Rush stated in a post that after repeated confirmation with the project team, the circulation data of WLFI shows an initial circulation of 27.21 billion tokens. Based on this value, the estimated initial circulation rate of WLFI is 27.2%, which differs significantly from the data in this article. Currently, WLFI is trading at a pre-market price of $0.32 on Binance. At this price, the corresponding market cap of WLFI exceeds $8.1 billion, ranking 28th on the cryptocurrency market cap list. The following is the original content:

With only two days left until the Trump family's cryptocurrency project World Liberty Financial (WLFI) officially unlocks and begins trading, many users still lack a clear understanding of WLFI's economic model and circulating supply, and are even unsure of how much WLFI will initially circulate. This lack of clarity has made it difficult for users to develop a targeted trading strategy for WLFI's opening.

The reason for this situation is that unlike other TGEs that have defined the tokenomics of their tokens at the same time, WLFI has adopted a "governance-first" approach, and the unlock rules for the majority of tokens have not yet been determined—it is expected that multiple rounds of community voting will be needed to finalize the solution.

As of the time of writing, there is limited information available on the tokenomics of WLFI.

One piece of information is the token distribution plan disclosed in the "Golden Paper," as follows:

· Total Supply: 100 billion WLFI;

· Token Sale: 33.9 billion (33.893%);

· Community Growth and Incentives: 32.6 billion (32.6%);

· Co-founders: 30 billion (30%);

· Team and Advisors: 3.5 billion (3.507%);

The second piece is the initial unlocking rules announced by WLFI on August 23rd—only the token shares of early presale users will be unlocked at the initial opening of WLFI. Specifically, 20% of the WLFI purchased by each address in the rounds priced between $0.015 and $0.05 will be unlocked, while the remaining 80% of the unlocking plan will be decided by the community through governance voting. The token shares of founders, team members, advisors, and partners are still locked, and these categories will not be included in the initial unlocking.

In short, to answer the question about WLFI's initial circulation rate, we don't need to consider various other token allocations at all. We only need to track the token shares of early supporters who participated in the fundraising rounds at $0.015 and $0.05. Fortunately, this data does exist as traceable clues in WLFI's contract.

Tokenomics analysis firm Tokenomist published a post last night stating that WLFI encoded 18 ownership categories in its smart contract (https://etherscan.io/address/0x4f61A99e42e21eA3c3EaF9B1b30Fb80A7900d3ce), but currently, only one category (https://etherscan.io/address/0x74B4f6A2E579D730aAcb9dD23cfbbAEb95029583#code) has complete metadata while the details of the other 17 categories are still unclear.

The user category with already defined metadata is the early presale user share recorded by WLFI, totaling approximately 18.43 billion tokens. As for why this data is 18.43 billion instead of the total sales of 25 billion from the two presale rounds, Chinese blockchain analyst "CryptoNyaRu" (@CryptoNyaRu) has provided a more detailed analysis, explaining that 6.57 billion out of the 25 billion was not counted. For more details, you can click on the original link to view: https://x.com/CryptoNyaRu/status/1959999708086321439

The WLFI ecosystem lottery project WLFI Winner has created a clearer visual chart of the token shares for this category and other categories. Details are as follows.

Odaily Note: The token share quantities of different categories, with only 20% of the first category set to be unlocked at initial circulation.

Odaily Note: In the first category, the distribution of addresses with different holding sizes.

So far, the initial circulation situation of WLFI seems to be quite clear, with the maximum initial circulation amount being 184.3 * 20% = 36.9 billion, accounting for approximately 3.69% of WLFI's total supply, but this is not all.

In terms of the initial unlock, WLFI has implemented a "Lockbox" mechanism, where even early presale users who meet the initial unlock criteria need to sign an unlock agreement through the "Lockbox" and proceed with the unlock process. After completing this process, all relevant WLFI will be transferred to a dedicated unlock contract (https://etherscan.io/address/0x74B4f6A2E579D730aAcb9dD23cfbbAEb95029583#readProxyContract).

As shown in the above figure, the current amount of WLFI stored in the "Lockbox" contract is approximately 157.03 billion, which represents the total holdings of early presale users who have completed the unlock process, which will serve as the base amount for the unlock on September 1—based on this base amount, statically calculated, the initial circulation of WLFI will be 157.03 * 20% = 31.4 billion, accounting for approximately 3.14% of WLFI's total supply.

Considering that more users are expected to complete the unlock process in the next two days, WLFI's final initial circulation ratio is estimated to be between 3.14% and 3.69%, corresponding to an initial circulation amount of approximately 31.4 - 36.9 billion tokens.

As of the time of writing, WLFI is preliminarily trading at 0.2681 USDT on Binance. (BlockBeats Note: As of 11:00 AM on September 1, the preliminary trading price of WLFI on Binance has risen to 0.3585.) Based on the calculated initial circulation amount mentioned above, the initial circulation market capitalization is estimated to be between 8.418 - 9.89 billion US dollars.

The above is only an analysis of WLFI's initial circulation status. As for what will happen after the market opens, you may refer to one of our earlier articles "WLFI Pre-Market Plunge, Will September 1 Listing Be a Peak or a 'Plunge'?".

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